While many companies have made great strides in addressing the alignment issue between marketing and sales, it’s still a safe bet to say that the challenge around alignment will continue to exist for this year and many more to come. If so much thought and energy has been put into trying to solve this ever present issue, why does it persist? Why do organizations still struggle to have marketing and sales work in a collaborative fashion?
I think the real reason is that the misalignment between marketing and sales is not actually the real problem. It’s actually a symptom of deeper problems:
- Lack of process
- Aligning around the wrong things
- Mismanaged sales quota
Lack of Process
According to several recent studies, up to 80% of leads do not get the proper follow-up. So, not surprisingly, one of the biggest challenges facing marketers is delivering qualified leads. But in most organizations, there are multiple definitions for “qualified leads,” depending on who you speak to. This inconsistency helps contribute to the misalignment. This challenge faced by organizations is most often because marketing and sales do not share a set of common definitions for terms such as “lead,” “qualified,” “prospect,” etc. Marketing and sales have not collaborated on defining a process framework that answers fundamental questions, such as “What is the definition of a ‘qualified lead’ for our company?”
Marketing and sales should work together to define a Lead Management Framework, including:
- data process
- lead planning process
- lead routing process
- lead qualification process
- lead nurturing process
- metrics process
Organizations that do so will benefit by having:
- A set of common definitions for managing leads
- SLAs and business rules for lead routing
- A lead scoring model that delivers quality leads to sales
- Lead nurturing communications for those not ready to buy
- A host of other benefits.
As one customer stated after developing their process, “Marketing and sales used to pass in the halls and not even look at each other. Now we pass and give high fives because we know we are a team.”
Aligning to the Wrong Thing
One of the obstacles that marketing and sales organizations face when looking to align is their own misunderstanding on what alignment should be based. They’re aligning around the wrong thing. For example, marketing may want sales to come their way and think about campaigns. Sales on the other hand, may ask marketing to start thinking about collateral support for helping to close deals. These examples are not alignment; they are just trying to get the other side to view the world their way. The truth is that the right thing around which marketing and sales teams should align are their buyers.
Today’s B2B buyer is looking to engage with their vendors and have a relevant 1-1 dialogue. They don’t care about the internal squabbles that may occur between marketing and sales teams. They want to feel attended to. So, marketing and sales need to collaborate on how to have the dialogue with the buyer.
There are three key areas on which this collaboration should focus. The first is identifying the ideal buyer profile. Having this profile (or profiles---most companies will have multiple personas/profiles unique to each service or product offering) ensures that marketing and sales will be engaging with the same targeted buyer.
Secondly, it’s vital to create a map for each profile’s buying cycle. This is more than just time to sale. It’s a full understanding of the buying journey of each persona to whom your organization sells. Understanding and defining the buyer’s journey will allow you to “walk in your customers’ shoes,” helping both marketing and sales to better understand what they need at each stage, and to engage them in meaningful dialogue.
The third area of focus, once you have identified the personas and mapped out the buyer journey, is to develop your offer and content maps. These maps are guides that will enable you to deliver the most relevant content to the buyer at every stage of the cycle. Communicating based on an offer/content map will improve the alignment with your buyer, enable 1-1 engagement and deliver a more qualified and educated prospect to sales.
Mismanaged Sales Quota
One of the biggest obstacles marketing and sales organizations face in trying to align is the issue of quota.
I remember a conversation I had with a sales VP at a company I used to work for where I ran one of the global marketing teams. It was about half-way through the quarter, and he was panicking because his team’s performance was not what he needed to attain quota. During the conversation he looked at me and said, “I know we agreed on a strategy at the beginning of the year, but right now I need revenue. I’m telling my team to ‘chase it and sign it’ or else I won’t be here to work the strategy for the second-half of the year.” What was I to say to that? This guy and some members of his team were fighting for their jobs. At the very least, I appreciated his candor.
The quarterly quota pressure is felt in organizations every 90-days. But this pressure would be easy to alleviate if organizations would begin to align their sales compensation plans to the buying/sales cycle (see customer alignment above). In the scenario I mentioned above, we had statistics that showed that the average buying time was 180 days. Yet we were telling our sales folks they had to sell in 90 days.
This quota pressure was not only causing panic in my sales counterparts, but it kept us from alignment with them as well. Sales had bypassed the agreed to strategy in exchange for demanding only hot leads. With that pressure there was no talk of nurturing, dialogue, buyer journeys, etc. They wanted leads they could close today!
This issue is easy to resolve and it’s something most organizations should seek to address early in 2011. The simple fix is to align sales quota to the customer buying cycle. This could result in either lengthening or shortening the quota cycle: If you have a 30-day sales cycle, then adjust your quota accordingly; if it’s 180 days, do the same. By adjusting your sales compensation to reflect the buying patterns of your buyer, you will not only provide your sales people a less pressure-filled environment in which to sell, you will better align with marketing and more importantly your buyer and marketing will be able to develop a demand generation strategy based on the buying cycles.
As we begin a new year, let’s stop addressing the symptom of marketing and sales alignment and begin working on some of the fundamental problems that are causing the symptom. It would be great if at this time next year, we could write about success stories instead of repeating ourselves on how to solve the problem.